In brief: Holy Family Villa seeks to increase expansion costs

Holy Family Villa, a long-term care facility in Palos Park, is requesting an alteration to its state permit that would allow it to spend an additional 7 percent on the cost of an expansion. The Illinois Health Facilities and Services Review Board in April 2012 granted a permit, called a certificate of need, for the addition of 30 skilled-nursing beds to Holy Family's complement of 99. The expansion was originally projected to cost $10.9 million. But the project encountered higher-than-expected construction-related costs for certain items, as well as other costs that weren't included in the original application, according to a June 5 letter sent to the board by Catholic Charities of the Archdiocese of Chicago, which operates the facility. The total amount of the overruns, $1.3 million, is partially covered by contingency funds, but the remainder would put the project over its originally budgeted amount, necessitating the permit alteration. An attorney handling the certificate of need for Holy Family declined to comment.

Lawndale health center resolves federal audit

The case of Lawndale Christian Health Center, which the U.S. Department of Health and Human Services' inspector general in September said improperly spent or couldn't determine how it spent a total of $811,000, has been resolved and no money is due to the agency, a federal spokesman said. In a statement, Jonathan Wildt, senior director of strategy and development at the West Side health center, said the center provided all the necessary documentation to substantiate how grant funds were spent and the audit was closed on May 17. The Health and Human Services awarded Lawndale Christian about $14 million in grants over a nearly three-year period that ended in December 2011, according to the inspector general's September audit.

Retirement community eyes $50 million bond issue

Orland Park retirement community Smith Crossing wants to issue up to $50 million in bonds, using about $22 million to repay a construction loan and another $22 million to refinance existing debt, according to documents from the Illinois Finance Authority. The nonprofit's parent, Smith Senior Living, used the loan to fund the community's $35 million expansion because the interest rate at the time was more attractive than rates available on bonds, said Ray Marneris, chief financial officer of Smith Senior Living. “We saved millions of dollars by doing it this way,” he said. The expansion, completed in October, added 106 units and converted 16 units from assisted living for patients with dementia to skilled nursing, bringing the southwest suburban facility to a total of 281 units.

(Editor's note: The name and location of Holy Family Villa, and the number of additional skilled-nursing beds, have been corrected in this updated story.)